1.
Office of the Comptroller of the Currency
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The Comptroller of the Currency is Thomas J. Curry. Headquartered in Washington, D. C. it has four offices located in New York City, Chicago, Dallas. It has an additional 48 field offices throughout the United States, the OCC participates in interagency activities in order to maintain the integrity of the national banking system. Other regulatory agencies like the OCC include, the Federal Deposit Insurance Corporation, the Federal Reserve, the Comptroller also serves as a director of the Neighborhood Reinvestment Corporation, and the Federal Deposit Insurance Corporation. In 2003, the OCC proposed regulations to preempt virtually all state banking and financial services laws for national banks and their range of non-bank. Despite opposition from the National Conference of State Legislatures, the OCCs regulations went into effect, in Watters v. Wachovia Bank, N. A.550 U. S. In Cuomo v. Clearing House Association, L. L. C.557 U. S, in October 2014, the OCC released a bulletin, Risk Management Guidance mandating that banks assess and manage the risk of all their third-party relationships. The bulletin states that a banks use of third parties does not diminish its responsibility to ensure that all activities are in compliance with applicable laws, previously, banks may have only monitored third party relationships which posed the greatest risk to them. Under the new guidelines banks must monitor all third-party relationships by adopting risk management processes commensurate with the level of risk, the document stresses the importance of an effective risk-management process throughout the entire life-cycle of the relationship. Banks often engage tens-of-thousands of third parties and are unable to manage the associated risk of all their relationships through traditional means. As a result, many banks have adopted external IT solutions to assist their needs and this has rapidly expanded the market for third-party management software solutions. In July 2007, the OCC launched HelpWithMyBank. gov to assist customers of national banks, title 12 of the Code of Federal Regulations Bank regulation in the United States Official website OCC in the Federal Register
2.
United States Department of the Treasury
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The Department of the Treasury is an executive department and the treasury of the United States federal government. It was established by an Act of Congress in 1789 to manage government revenue, the Department is administered by the Secretary of the Treasury, who is a member of the Cabinet. On February 13,2017, the Senate confirmed Steven Mnuchin as Secretary of the Treasury, the first Secretary of the Treasury was Alexander Hamilton, who was sworn into office on September 11,1789. Hamilton was asked by President George Washington to serve after first having asked Robert Morris, Hamilton almost single-handedly worked out the nations early financial system, and for several years was a major presence in Washingtons administration as well. His portrait is on the obverse of the U. S. ten-dollar bill while the Treasury Department building is shown on the reverse. Besides the Secretary, one of the best-known Treasury officials is the Treasurer of the United States whose signature, along with the Treasury Secretarys, the Treasury prints and mints all paper currency and coins in circulation through the Bureau of Engraving and Printing and the United States Mint. The Department also collects all federal taxes through the Internal Revenue Service, the Congress had no power to levy and collect taxes, nor was there a tangible basis for securing funds from foreign investors or governments. The delegates resolved to issue paper money in the form of bills of credit, the Congress stipulated that each of the colonies contribute to the Continental governments funds. With the signing of the Declaration of Independence on July 4,1776, despite the infusion of foreign and domestic loans to pay for a war of independence, the United Colonies were unable to establish a well-organized agency for financial administration. Michael Hillegas was first called Treasurer of the United States on May 14,1777, the Treasury Office was reorganized three times between 1778 and 1781. The $241.5 million of paper Continental Dollars devalued rapidly, by May 1781, the dollar collapsed at a rate of from 500 to 1000 to 1 against hard currency. Protests against the worthless money swept the colonies and angry Americans coined the expression not worth a Continental, Robert Morris was designated Superintendent of Finance in 1781 and restored stability to the nations finances. Morris, a colonial merchant, was nicknamed the Financier because of his reputation for procuring funds or goods on a moments notice. His staff included a Comptroller, a Treasurer, a Register, and auditors, who managed the finances through 1784. The Treasury Board of three Commissioners continued to oversee the finances of the confederation of former colonies until September 1789, the First Congress of the United States was called to convene in New York on March 4,1789, marking the beginning of government under the Constitution. Alexander Hamilton took the oath of office as the first Secretary of the Treasury on September 11,1789, Hamilton had served as George Washingtons aide-de-camp during the Revolution, and was of great importance in the ratification of the Constitution. Because of his financial and managerial acumen, Hamilton was a choice for solving the problem of the new nations heavy war debt. Hamiltons first official act was to submit a report to Congress in which he laid the foundation for the financial health
3.
Second Bank of the United States
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The banks formal name, according to section 9 of its charter as passed by Congress, was The President, Directors, and Company, of the Bank of the United States. A private corporation with public duties, the bank handled all fiscal transactions for the U. S. Government, and was accountable to Congress, twenty percent of its capital was owned by the federal government, the banks single largest stockholder. Four thousand private investors held 80% of the capital, including one thousand Europeans. The bulk of the stocks were held by a few hundred wealthy Americans, in its time, the institution was the largest monied corporation in the world. The federal deposits endowed the BUS with its regulatory capacity, failing to secure recharter, the Second Bank of the United States became a private corporation in 1836, and underwent liquidation in 1841. A national alliance arose to legislate a central bank to address these needs, calhoun of South Carolina and Henry Clay of Kentucky was decisive in the successful chartering effort. The charter was signed into law by Madison on April 10,1816, opposition to the banks revival emanated from two interests. if Congress could incorporate a bank, it might emancipate a slave. Hostile to the effects of the central bank, private banks—proliferating with or without state charters—had scuttled rechartering of the first BUS in 1811. These interests played significant roles in undermining the institution during the administration of U. S. President Andrew Jackson, Government land sales in the West, fueled by European demand for agricultural products, ensured that a speculative bubble would form. When the U. S. Further, it transpired that branch directors for the Baltimore office had engaged in fraud and larceny. Resigning in January 1819, Jones was replaced by Langdon Cheves who continued the contraction in credit in an effort to stop inflation and stabilize the bank, the central banks reaction to the crisis—a clumsy expansion, then a sharp contraction of credit—indicated its weakness, not its strength. The effects were catastrophic, resulting in a recession with mass unemployment. The financial crisis raised doubts among the American public as to the efficacy of paper money, upon this widespread disaffection the anti-bank Jacksonian Democrats would mobilize opposition to the BUS in the 1830s. The national bank was in disrepute among most Americans when Nicholas Biddle. Under Biddles guidance, the BUS evolved into a banking institution that produced a strong and sound system of national credit. From 1823 to 1833, Biddle expanded credit steadily, but with restraint, albert Gallatin, former Secretary of the Treasury under Thomas Jefferson and James Madison, wrote in 1831 that the BUS was fulfilling its charter expectations. By the time of Jacksons inauguration in 1829, the bank appeared to be on solid footing. Public perceptions of the bank were generally positive
4.
James K. Polk
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James Knox Polk was the 11th President of the United States. Polk was born in Pineville, North Carolina, and moved to Tennessee to study law, after building a successful law practice, he was elected to the Tennessee legislature and then to the United States House of Representatives in 1825. He left Congress to serve as Governor of Tennessee from 1839 to 1841, after losing re-election as governor in 1840, and losing in another gubernatorial election in 1842, Polk was a dark horse candidate for president in 1844. Though he entered the convention hoping to be nominated for vice president, in the general election, he defeated Henry Clay of the rival Whig Party in large part due to his promise to annex the Republic of Texas. True to his pledge to serve only one term as President, Polk left office in March 1849. He died of cholera three months later, scholars have ranked him favorably on lists of greatest presidents for his ability to promote, obtain support for, and achieve all of the major items on his presidential agenda. However, he has also criticized for leading the country into war against Mexico. Polk has been called the least known consequential president, James Knox Polk, the first of ten children, was born on November 2,1795 in a log house in what is now Pineville, North Carolina in Mecklenburg County, just outside Charlotte. His father, Samuel Polk, was a slaveholder, successful farmer and his mother, Jane Polk, was a descendant of a brother of the Scottish religious reformer John Knox. She named her firstborn after her father James Knox, like many early Scots-Irish settlers in the North Carolina mountains, the Knox and Polk families were Presbyterian. While Polks mother Jane remained a devout Presbyterian her entire life, when the parents took the young James to a Presbyterian church to be baptized, the father Samuel refused to declare his belief in Christianity, and the minister refused to baptize the child. In 1803, most of Polks relatives moved to the Duck River area in what is now Maury County, Middle Tennessee, the family grew prosperous, with Samuel Polk turning to land speculation and becoming a county judge. His health was problematic and in 1812 his pain became so unbearable that he was taken to Dr. Ephraim McDowell of Danville, Kentucky, Polk was awake during the operation with nothing but brandy available for anesthetic, but it was successful. The surgery may have left Polk sterile, as he did not sire any children, when Polk recovered, his father offered to bring him into the mercantile business, but Polk refused. In July 1813, Polk enrolled at the Zion Church near his home, a year later he attended an academy in Murfreesboro, where he may have met his future wife, Sarah Childress. At Murfreesboro, Polk proved a promising student, in January 1816, Polk was admitted into the University of North Carolina as a second-semester sophomore. The Polk family had connections with the university, then a school of about 80 students, Sam Polk was their land agent for Tennessee. While there, Polk joined the Dialectic Society where he took part in debates
5.
Greenback (money)
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Greenbacks were paper currency issued by the United States during the American Civil War. They were in two forms, Demand Notes, issued in 1861–1862, and United States Notes issued in 1862–1865 and they were legal tender by law, but were not backed by gold or silver, only the credibility of the U. S. government. Before the Civil War, the money issued by the United States was gold and silver coins, and only such coins were legal tender. Paper currency in the form of banknotes was issued by privately owned banks, such notes had value only if the bank could be counted on to redeem them. If a bank failed, its notes became worthless, national governments had in the past issued paper money and made it legal tender, but usually with at least the pretense that the notes would be redeemable for specie at some time. Continental dollars issued by the Continental Congress during the American Revolution had no such backing, during the early 1800s, the U. S. issued interest-bearing Treasury Notes in various denominations. These were not legal tender, but could be used to pay customs duties, when President Abraham Lincoln assumed office, he understood the importance of money for the war effort. With this in mind, Lincoln appointed Salmon P. Chase as Secretary of the Treasury, as Secretary, Chase alone was authorized to act on all matters pertaining to the country’s finances. Chase, like almost everyone at the time, underestimated the duration, within a few months it was clear that the costs of the war would run far beyond the governments limited income from tariffs and excises. The Lincoln Administration sought loans from banks, mostly in New York City. The banks demanded very high interest rates of 24 to 36 percent, Lincoln refused to borrow on such terms and called for other solutions. This was the first measure to finance the war, in July 1861, Congress authorized $50,000,000 in Demand Notes. They bore no interest, but could be redeemed for specie on demand and they were not legal tender, but like Treasury Notes could be used to pay customs duties. Unlike private and state banknotes, Demand Notes were printed on both sides, the reverse side was printed in green ink, and so the Demand Notes were dubbed greenbacks. Initially they were discounted relative to gold, but being fully redeemable in gold were soon at par, in December 1861, the government had to suspend redemption, and they declined. Chase authorized paying interest on Demand Notes, which sustained their value, the later United States Notes could not be used to pay customs duties, only gold and Demand Notes. Importers therefore continued to use Demand Notes in place of gold, in March 1862, Demand Notes were made legal tender. As Demand Notes were used to pay duties, they were out of circulation
6.
United States Statutes at Large
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Each act and resolution of Congress is called a slip law, which is classified as either public law or private law, and designated and numbered accordingly. At the end of a Congress session, slip laws are compiled into Statutes at Large and they are part of a three-part model for publication of federal statutes consisting of slip laws, session laws, and codification. Today, large portions of slip laws denominated as public laws are now drafted as amendments to the United States Code. Once enacted into law, an Act will be published in the Statutes at Large and will add to, modify, provisions of a public law that contains only enacting clauses, effective dates, and similar matters are not generally codified. Private laws also are not generally codified, some portions of the United States Code have been enacted as positive law and other portions have not been so enacted. Publication of the United States Statutes at Large began in 1845 by the firm of Little, Brown. During Little, Brown and Companys time as publisher, Richard Peters, George Minot, in 1874, Congress transferred the authority to publish the Statutes at Large to the Government Printing Office under the direction of the Secretary of State. 633, was enacted July 30,1947 and directed the Secretary of State to compile, edit, index,980, was enacted September 23,1950 and directed the Administrator of General Services to compile, edit, index, and publish the Statutes at Large. Since 1985 the Statutes at Large have been prepared and published by the Office of the Federal Register of the National Archives, sometimes very large or long Acts of Congress are published as their own volume of the Statutes at Large. For example, the Internal Revenue Code of 1954 was published as volume 68A of the Statutes at Large. Volumes 1 to 18 of the Statutes at Large made available by the Library of Congress Volumes 1 to 64 of the Statutes at Large made available by the Congressional Data Coalition via LEGISWORKS
7.
First National Bank (Philadelphia)
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First National Bank was a bank in Philadelphia. It operated independently until 1955, when it was merged into the Bank of North America and Trust Company, congress took up the effort with the 1863 National Banking Act and National Currency Act, passing the latter on February 25,1863. Uncoincidentally, the first charter under the new Act went to a group of Philadelphia financiers that included Cooke. They received the charter on June 20, opened the doors of First National Bank on July 11, the banks president from 1863 to 1873 was Clarence Howard Clark, Sr. In 1955, First National Bank merged with the Bank of North America and Trust Company and this firm became Corestates which was acquired by First Union, which became Wachovia Bank, which was acquired by Wells Fargo in 2009. The bank commissioned a new building at 315 Chestnut Street, which became an anchor of what was Americas original Wall Street. Designed by Philadelphia architect John McArthur, Jr. for a fee of $3,500, the cornerstone was laid on May 23,1866. The vault, or thief-proof, and locks were provided by Farrell and it was considered outstanding as an example of the Palazzo facade adapted to a bank building. In 1953, the interior was stripped, and the later became vacant. In 1995, the building was acquired by the Chemical Heritage Foundation, list of bank mergers in the United States
8.
Federal Reserve Act
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The Act was signed into law by President Woodrow Wilson. The Federal Reserve Act created a system of private and public entities, there were to be at least eight and no more than twelve private regional Federal Reserve banks. Twelve were established, and each had various branches, a board of directors, the Federal Reserve Board, consisting of seven members, was created as the governing body of the Fed. Each member is appointed by the President of the U. S, in 1935, the Board was renamed and restructured. Also created as part of the Federal Reserve System was a 12-member Federal Advisory Committee and a single new United States currency, the Federal Reserve Note. The Federal Reserve Act created a currency and a monetary system that could respond effectively to the stresses in the banking system. With the passing of the Federal Reserve Act, Congress required that all nationally chartered banks become members of the Federal Reserve System, since 1980, all depository institutions have been required to set aside reserves with the Federal Reserve. Such institutions are entitled to certain Federal Reserve services, central banking has made various institutional appearances throughout the history of the United States. These institutions started with the First and Second banks of the United States, the American financial system was deeply fragmented after the American Revolutionary War. The government was burdened with large debts, and the new republic needed a strong financial institution to give the country a resilient financial footing. Alexander Hamilton and Thomas Jefferson had opposing views regarding whether or not the US could benefit from a European-style national financial institution, Hamilton was in favor of building a strong centralized political and economic institution to solve the country’s financial problem. He argued that a bank could bring order to the US monetary system, manage the government’s revenues and payments. On the other hand, Jefferson was deeply suspicious of a bank because, he argued. The First Bank of the United States was established in 1791 chartered for a period of twenty years, the US government was the largest shareholder of the bank. Despite its shareholder status, the government was not permitted to participate in management of the bank, the bank accepted deposits, issued bank notes, and provided short-term loans to the government. It also functioned as a clearinghouse for government debt, the bank could also regulate state-charted banks to prevent overproduction of banknotes. The bank was successful in financing the government and stimulating the economy. In spite of its successes, hostility against the bank did not fade, in 1811, the first bank of the United States failed to be renewed by one vote in both the House and the Senate
9.
Security (finance)
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A security is a tradable financial asset. The term commonly refers to any form of instrument. In some jurisdictions the term specifically excludes financial instruments other than equities, in some jurisdictions it includes some instruments that are close to equities and fixed income, e. g. equity warrants. In the United States, a security is a financial asset of any kind. Securities are broadly categorized into, debt securities equity securities derivatives, the company or other entity issuing the security is called the issuer. A countrys regulatory structure determines what qualifies as a security, for example, private investment pools may have some features of securities, but they may not be registered or regulated as such if they meet various restrictions. Securities may be represented by a certificate or, more typically, non-certificated, region or country Market capitalization State Securities are the traditional way that commercial enterprises raise new capital. These may be an alternative to bank loans depending on their pricing. Another disadvantage of bank loans as a source of financing is that the bank may seek a measure of protection against default by the borrower via extensive financial covenants, through securities, capital is provided by investors who purchase the securities upon their initial issuance. In a similar way, a government may issue securities too when it needs to increase government debt, investors in securities may be retail, i. e. members of the public investing other than by way of business. The greatest part of investment, in terms of volume, is wholesale, i. e. by financial institutions acting on their own account, important institutional investors include investment banks, insurance companies, pension funds and other managed funds. The traditional economic function of the purchase of securities is investment, debt securities generally offer a higher rate of interest than bank deposits, and equities may offer the prospect of capital growth. Equity investment may also control of the business of the issuer. Debt holdings may also offer some measure of control to the if the company is a fledgling start-up or an old giant undergoing restructuring. In these cases, if interest payments are missed, the creditors may take control of the company, the last decade has seen an enormous growth in the use of securities as collateral. Purchasing securities with borrowed money secured by other securities or cash itself is called buying on margin, where A is owed a debt or other obligation by B, A may require B to deliver property rights in securities to A, either at inception or only in default. Collateral arrangements are divided into two categories, namely security interests and outright collateral transfers. Commonly, commercial banks, investment banks, government agencies and other investors such as mutual funds are significant collateral takers as well as providers
10.
American Civil War
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The American Civil War was an internal conflict fought in the United States from 1861 to 1865. The Union faced secessionists in eleven Southern states grouped together as the Confederate States of America, the Union won the war, which remains the bloodiest in U. S. history. Among the 34 U. S. states in February 1861, War broke out in April 1861 when Confederates attacked the U. S. fortress of Fort Sumter. The Confederacy grew to eleven states, it claimed two more states, the Indian Territory, and the southern portions of the western territories of Arizona. The Confederacy was never recognized by the United States government nor by any foreign country. The states that remained loyal, including border states where slavery was legal, were known as the Union or the North, the war ended with the surrender of all the Confederate armies and the dissolution of the Confederate government in the spring of 1865. The war had its origin in the issue of slavery. The Confederacy collapsed and 4 million slaves were freed, but before his inauguration, seven slave states with cotton-based economies formed the Confederacy. The first six to declare secession had the highest proportions of slaves in their populations, the first seven with state legislatures to resolve for secession included split majorities for unionists Douglas and Bell in Georgia with 51% and Louisiana with 55%. Alabama had voted 46% for those unionists, Mississippi with 40%, Florida with 38%, Texas with 25%, of these, only Texas held a referendum on secession. Eight remaining slave states continued to reject calls for secession, outgoing Democratic President James Buchanan and the incoming Republicans rejected secession as illegal. Lincolns March 4,1861 inaugural address declared that his administration would not initiate a civil war, speaking directly to the Southern States, he reaffirmed, I have no purpose, directly or indirectly to interfere with the institution of slavery in the United States where it exists. I believe I have no right to do so, and I have no inclination to do so. After Confederate forces seized numerous federal forts within territory claimed by the Confederacy, efforts at compromise failed, the Confederates assumed that European countries were so dependent on King Cotton that they would intervene, but none did, and none recognized the new Confederate States of America. Hostilities began on April 12,1861, when Confederate forces fired upon Fort Sumter, while in the Western Theater the Union made significant permanent gains, in the Eastern Theater, the battle was inconclusive in 1861–62. The autumn 1862 Confederate campaigns into Maryland and Kentucky failed, dissuading British intervention, Lincoln issued the Emancipation Proclamation, which made ending slavery a war goal. To the west, by summer 1862 the Union destroyed the Confederate river navy, then much of their western armies, the 1863 Union siege of Vicksburg split the Confederacy in two at the Mississippi River. In 1863, Robert E. Lees Confederate incursion north ended at the Battle of Gettysburg, Western successes led to Ulysses S. Grants command of all Union armies in 1864
11.
Transactional account
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A transaction account, checking account, current account or demand deposit account is a deposit account held at a bank or other financial institution. It is available to the account owner on demand and is available for frequent, access may be in a variety of ways, such as cash withdrawals, use of cheques and debit by electronic transfer. In economic terms, the funds held in an account are regarded as liquid funds. Transaction accounts are operated by businesses and personal users. Depending on the country and local demand economics they may not earn any or they can earn very high interest rates, in the United Kingdom, Hong Kong, India and a number of other countries, they are commonly called current or cheque accounts. Because money is available on demand they are sometimes known as a demand accounts or demand deposit accounts. In the United States, NOW accounts operate as transaction accounts, most current accounts come with a cheque book and offer the facility to arrange standing orders, direct debits and payment via a debit card. Current accounts may also allow borrowing via an overdraft facility, in Holland in the early 1500s, Amsterdam was a major trading and shipping city. People who had acquired large accumulations of cash began to deposit their money with cashiers to protect their wealth and these cashiers held the money for a fee. Competition drove cashiers to offer services, including paying out money to any person bearing a written order from a depositor to do so. They kept the note as proof of payment, in the 18th century in England, preprinted checks, serial numbers, and the word cheque appeared. By the late 18th century, the difficulty of clearing checks gave rise to the development of clearing houses, all transaction accounts offer itemized lists of all financial transactions, either through a bank statement or a passbook. Canada has an Email Money Transfer service In India, NEFT, customers may need to attend a bank branch for a wide range of banking transactions including cash withdrawals and financial advice. There may be restrictions on withdrawals, even at a branch. For example, withdrawals of cash above a threshold figure may require notice, many transactions that previously could only be performed at a branch can now be done in others ways, such as use of ATMs, online, mobile and telephone banking. Cheques were the method of making withdrawals from a transaction account. Automated teller machines enable customers of an institution to perform financial transactions without attending a branch. This enables, for example, cash to be withdrawn from an account outside normal trading hours
12.
Gramm-Leach-Bliley Act
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The Gramm–Leach–Bliley Act, also known as the Financial Services Modernization Act of 1999, is an act of the 106th United States Congress. With the bipartisan passage of the Gramm–Leach–Bliley Act, commercial banks, investment banks, securities firms, furthermore, it failed to give to the SEC or any other financial regulatory agency the authority to regulate large investment bank holding companies. The legislation was signed into law by President Bill Clinton, because this merger was a violation of the Glass–Steagall Act and the Bank Holding Company Act of 1956, the Federal Reserve gave Citigroup a temporary waiver in September 1998. Less than a later, GLBA was passed to legalize these types of mergers on a permanent basis. The banking industry had been seeking the repeal of the 1933 Glass–Steagall Act since the 1980s, in 1987 the Congressional Research Service prepared a report that explored the cases for and against preserving the Glass–Steagall act. Respective versions of the Financial Services Act were introduced in the U. S. Senate by Phil Gramm, the third lawmaker associated with the bill was Rep. Thomas J. Bliley, Jr. Chairman of the House Commerce Committee from 1995 to 2001. During debate in the House of Representatives, Rep. John Dingell argued that the bill would result in banks becoming too big to fail, Dingell further argued that this would necessarily result in a bailout by the Federal Government. The bill then moved to a joint conference committee to work out the differences between the Senate and House versions, on November 4, the final bill resolving the differences was passed by the Senate 90–8, and by the House 362–57. The legislation was signed into law by President Bill Clinton on November 12,1999, many of the largest banks, brokerages, and insurance companies desired the Act at the time. The justification was that individuals usually put more money into investments when the economy is doing well, but they put most of their money into savings accounts when the economy turns bad. With the new Act, they would be able to do both savings and investment at the financial institution, which would be able to do well in both good and bad economic times. Prior to the Act, most financial services companies were already offering both saving and investment opportunities to their customers. On the retail/consumer side, a bank called Norwest Corporation, which would merge with Wells Fargo Bank. American Express attempted to own participants in almost every field of financial business, things culminated in 1998 when Citibank merged with Travelers Insurance, creating CitiGroup. The merger violated the Bank Holding Company Act, but Citibank was given a two-year forbearance that was based on an assumption that they would be able to force a change in the law. Also prior to the passage of the Act, there were many relaxations to the Glass–Steagall Act, for example, a few years earlier, commercial Banks were allowed to pursue investment banking, and before that banks were also allowed to begin stock and insurance brokerage. Insurance underwriting was the main operation they werent allowed to do. The Act further enacted three provisions that allow for bank holding companies to engage in physical commodity activities, prior to the enactment of the Act those activities were limited to those that were so closely related to banking to be considered incidental to it
13.
John D. Hawke, Jr.
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John D. Hawke, Jr, served as the United States Under Secretary of the Treasury for Domestic Finance from 1995 to 1998, and was United States Comptroller of the Currency from 1998 to 2004. John D. Hawke, Jr. was born in New York City on June 26,1933 and he was graduated from Yale University in 1954 with a B. A. in English. From 1955 to 1957 he served on duty with the U. S. Air Force. After graduating in 1960 from Columbia University School of Law, Hawke was a law clerk for Judge E. Barrett Prettyman on the United States Court of Appeals for the District of Columbia Circuit. From 1961 to 1962 he served as counsel to the Select Subcommittee on Education in the U. S. House of Representatives, Hawke joined the Washington, D. C. law firm of Arnold & Porter as an associate in 1962 and later became a senior partner. In 1975 he left the firm to serve as counsel to the Board of Governors of the Federal Reserve System. From 1987 to 1995 he served as chairman of the firm, from 1970 to 1987 Hawke taught courses on federal regulation of banking at the Georgetown University Law Center. He has also taught courses on bank acquisitions and financial regulation and he was a founding member of the Shadow Financial Regulatory Committee and served on the committee until joining the Treasury Department in April 1995. Hawke served for 3½ years as Under Secretary of the Treasury for Domestic Finance, in that capacity he oversaw the development of policy and legislation in the areas of financial institutions, debt management, and capital markets. After serving as Comptroller of the Currency, 1998–2004, Hawke returned to practice with the well-connected Washington. He was married in 1962 to the late Marie R. Hawke and has four adult children, Hawke was sworn in as the 28th Comptroller of the Currency on December 8,1998. After serving for 10 months under an appointment, he was sworn in for a full five-year term as Comptroller on October 13,1999. He has introduced management and budget reforms in the operations of the Office of the Comptroller of the Currency as well as programs designed to increase workplace diversity. Even in the face of a lawsuit filed by all 50 Attorneys General. This may have allowed the financial collapse of the worlds economies to occur. A recent Business Week article highlights Hawkes role in shielding the banking industry from state regulation during his tenure as Comptroller of the Currency, the state government officials wanted more power to limit exceeding high interest rates and oppressive mortgage terms. The AGs left the tense hour-long meeting realizing that Washington had become a foe in the nascent fight against reckless real estate finance, the OCC took 50 sheriffs off the job during the time the mortgage lending industry was becoming the Wild West, Cooper says. The doctrine of pre-emption that Hawke cited asserts that federal authority trumps state government authority when their regulatory rules come into conflict, Business Week quotes Hawkes response as, That bull----
14.
Comptroller of the Currency
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The Comptroller of the Currency is Thomas J. Curry. Headquartered in Washington, D. C. it has four offices located in New York City, Chicago, Dallas. It has an additional 48 field offices throughout the United States, the OCC participates in interagency activities in order to maintain the integrity of the national banking system. Other regulatory agencies like the OCC include, the Federal Deposit Insurance Corporation, the Federal Reserve, the Comptroller also serves as a director of the Neighborhood Reinvestment Corporation, and the Federal Deposit Insurance Corporation. In 2003, the OCC proposed regulations to preempt virtually all state banking and financial services laws for national banks and their range of non-bank. Despite opposition from the National Conference of State Legislatures, the OCCs regulations went into effect, in Watters v. Wachovia Bank, N. A.550 U. S. In Cuomo v. Clearing House Association, L. L. C.557 U. S, in October 2014, the OCC released a bulletin, Risk Management Guidance mandating that banks assess and manage the risk of all their third-party relationships. The bulletin states that a banks use of third parties does not diminish its responsibility to ensure that all activities are in compliance with applicable laws, previously, banks may have only monitored third party relationships which posed the greatest risk to them. Under the new guidelines banks must monitor all third-party relationships by adopting risk management processes commensurate with the level of risk, the document stresses the importance of an effective risk-management process throughout the entire life-cycle of the relationship. Banks often engage tens-of-thousands of third parties and are unable to manage the associated risk of all their relationships through traditional means. As a result, many banks have adopted external IT solutions to assist their needs and this has rapidly expanded the market for third-party management software solutions. In July 2007, the OCC launched HelpWithMyBank. gov to assist customers of national banks, title 12 of the Code of Federal Regulations Bank regulation in the United States Official website OCC in the Federal Register
15.
Late-2000s recession
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The Great Recession was a period of general economic decline observed in world markets during the late 2000s and early 2010s. The scale and timing of the recession varied from country to country, in terms of overall impact, the International Monetary Fund concluded that it was the worst global recession since World War II. According to the US National Bureau of Economic Research the recession, as experienced in that country, began in December 2007 and ended in June 2009, the Great Recession was related to the financial crisis of 2007–08 and U. S. subprime mortgage crisis of 2007–09. The Great Recession has resulted in the scarcity of valuable assets in the market economy, under the academic definition, the recession ended in the United States in June or July 2009. In the broader, lay sense of the word however, many use the term to refer to ongoing hardship. The Great Recession met the IMF criteria for being a recession, requiring a decline in annual real world GDP per‑capita. According to the U. S. National Bureau of Economic Research the recession began in December 2007 and ended in June 2009, the years leading up to the crisis were characterized by an exorbitant rise in asset prices and associated boom in economic demand. Further, the U. S. shadow banking system had grown to rival the depository system yet was not subject to the regulatory oversight. US mortgage-backed securities, which had risks that were hard to assess, were marketed around the world, the emergence of sub-prime loan losses in 2007 began the crisis and exposed other risky loans and over-inflated asset prices. With loan losses mounting and the fall of Lehman Brothers on 15 September 2008, the global recession that followed resulted in a sharp drop in international trade, rising unemployment and slumping commodity prices. Several economists predicted that recovery might not appear until 2011 and that the recession would be the worst since the Great Depression of the 1930s, Economist Paul Krugman once commented on this as seemingly the beginning of a second Great Depression. Governments and central banks responded with fiscal and monetary policies to national economies. The recession has renewed interest in Keynesian economic ideas on how to combat recessionary conditions, economists advise that the stimulus should be withdrawn as soon as the economies recover enough to chart a path to sustainable growth. Income inequality in the United States has grown from 2005 to 2012 in more than 2 out of 3 metropolitan areas, median household wealth fell 35% in the US, from $106,591 to $68,839 between 2005 and 2011. The majority report of the U. S, Financial Crisis Inquiry Commission, composed of six Democratic and four Republican appointees, reported its findings in January 2011. There were two Republican dissenting FCIC reports, one of them, signed by three Republican appointees, concluded that there were multiple causes. He wrote, When the bubble began to deflate in mid-2007, There are several narratives attempting to place the causes of the recession into context, with overlapping elements. Four such narratives include, There was the equivalent of a run on the shadow banking system
16.
Emergency Economic Stabilization Act of 2008
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The Emergency Economic Stabilization Act of 2008, commonly referred to as a bailout of the U. S. Both foreign and domestic banks are included in the program, the Act was proposed by Treasury Secretary Henry Paulson during the global financial crisis of 2008 and signed into law by President George W. Bush on October 3,2008. The plan, which was presented to Federal Reserve Chairman Ben Bernanke. The bill was then expanded and put forth as an amendment to H. R.3997, the amendment was rejected via a vote of the House of Representatives on September 29,2008, voting 205–228. The Senate accepted the amendment and passed the amended bill. Additional unrelated provisions added an estimated $150 billion to the cost of the package, the amended version of H. R.1424 was sent to the House for consideration, and on October 3, the House voted 263–171 to enact the bill into law. President George W. Bush signed the bill into law within hours of its congressional enactment, on Monday, October 6, the Dow Jones Industrial Average dropped more than 700 points and fell below 10,000 for the first time in four years. Iceland halted trading in six bank stocks while the government drafted a crisis plan, U. S. Treasury Secretary Henry Paulson proposed a plan under which the U. S. Treasury would acquire up to $700 billion worth of mortgage-backed securities. The plan was backed by President George W. Bush. The draft proposal was received favorably by investors in the market, but caused the U. S. dollar to fall against gold, the Euro. The plan was not immediately approved by Congress, debate and amendments were seen as likely before the plan was to receive legislative enactment, the U. S. administration pressured other countries to set up similar bailout plans. On September 23, the plan was presented by Paulson and Bernanke to the Senate Banking Committee, on September 24, President Bush addressed the nation on prime time television, describing how serious the financial crisis could become if action was not taken promptly by Congress. The plan was introduced on September 20, by Paulson, the proposal was only three pages long, intentionally short on details to facilitate quick passage by Congress. The draft proposal of the plan was received favorably by investors in the stock market and this plan can be described as a risky investment, as opposed to an expense. The MBS within the scope of the program have rights to the cash flows from the underlying mortgages. As such, the outflow of government funds to purchase the MBS would be offset by ongoing cash inflows represented by the monthly mortgage payments. Further, the government eventually may be able to sell the assets, the ability of the government to offset the purchase price depends on the valuation assigned to the MBS at the time of purchase. For example, Merrill Lynch wrote down the value of its MBS to approximately 22 cents on the dollar in Q22008, whether the government is ultimately able to resell the assets above the purchase price or will continue to merely collect the mortgage payments is an open item
17.
Subprime mortgage crisis
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The United States subprime mortgage crisis was a nationwide banking emergency that contributed to the U. S. recession of December 2007 – June 2009. It was triggered by a decline in home prices after the collapse of a housing bubble, leading to mortgage delinquencies and foreclosures. Declines in residential investment preceded the recession and were followed by reductions in household spending, spending reductions were more significant in areas with a combination of high household debt and larger housing price declines. A proximate cause was the rise in subprime lending. S, a high percentage of these subprime mortgages, over 90% in 2006 for example, were adjustable-rate mortgages. These two changes were part of a trend of lowered lending standards and higher-risk mortgage products. When U. S. home prices declined steeply after peaking in mid-2006, as adjustable-rate mortgages began to reset at higher interest rates, mortgage delinquencies soared. Securities backed with mortgages, including mortgages, widely held by financial firms globally. Concerns about the soundness of U. S. credit and financial markets led to tightening credit around the world and slowing growth in the U. S. The crisis had severe, long-lasting consequences for the U. S. the U. S. entered a deep recession, with nearly 9 million jobs lost during 2008 and 2009, roughly 6% of the workforce. One estimate of lost output from the crisis comes to at least 40% of 2007 gross domestic product, U. S. housing prices fell nearly 30% on average and the U. S. stock market fell approximately 50% by early 2009. As of early 2013, the U. S. stock market had recovered to its pre-crisis peak, Economic growth remained below pre-crisis levels. Europe also continued to struggle with its own crisis, with elevated unemployment. The immediate cause or trigger of the crisis was the bursting of the United States housing bubble which peaked in approximately 2005–2006. However, once interest rates began to rise and housing prices started to drop moderately in 2006–2007 in many parts of the U. S. borrowers were unable to refinance. Defaults and foreclosure activity increased dramatically as easy initial terms expired, home prices fell, as housing prices fell, global investor demand for mortgage-related securities evaporated. This became apparent by July 2007, when investment bank Bear Stearns announced that two of its hedge funds had imploded and these funds had invested in securities that derived their value from mortgages. When the value of these securities dropped, investors demanded that these hedge funds provide additional collateral and this created a cascade of selling in these securities, which lowered their value further. Economist Mark Zandi wrote that this 2007 event was arguably the proximate catalyst for the market disruption that followed
18.
US banking law
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Banking in the United States is regulated by both the federal and state governments. The five largest banks in the United States at December 31,2011 were JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, and Goldman Sachs. In December 2011, the five largest banks assets were equal to 56 percent of the U. S. economy, the U. S. finance industry comprised only 10% of total non-farm business profits in 1947, but it grew to 50% by 2010. Over the same period, finance industry income as a proportion of GDP rose from 2. 5% to 7. 5%, and the finance industrys proportion of all corporate income rose from 10% to 20%. The mean earnings per hour in finance relative to all other sectors has closely mirrored the share of total U. S. income earned by the top 1% income earners since 1930. The mean salary in New York Citys finance industry rose from $80,000 in 1981 to $360,000 in 2011, while average New York City salaries rose from $40,000 to $70,000. American banking is closely linked to the UK, in 2014, Bank regulation in the United States is highly fragmented compared with other G10 countries. While most of countries have only one bank regulator, in the U. S. banking is regulated at both the federal and state level. Depending on its type of charter and organizational structure, an organization may be subject to numerous federal. Unlike Japan and the United Kingdom, the U. S. maintains separate securities, commodities, U. S. banking regulation addresses privacy, disclosure, fraud prevention, anti-money laundering, anti-terrorism, anti-usury lending, and the promotion of lending to lower-income populations. Some individual cities also enact their own financial regulation laws, Federal credit unions are regulated by National Credit Union Administration. Over time, the roles and responsibilities of the Federal Reserve System have expanded, events such as the Great Depression were major factors leading to changes in the system. S. Member banks and various advisory councils, denied 454 US1082, but the court refused to rule on the merits, declining jurisdiction on equity. The responsibilities of the bank are divided into several separate and independent parts, some private. The result is a structure that is considered unique among central banks and it is also unusual in that an entity outside of the central bank, namely the United States Department of the Treasury, creates the currency used. However, its authority is derived from the U. S. Congress and is subject to congressional oversight, additionally, the members of the Board of Governors, including its chairman and vice-chairman, are chosen by the President and confirmed by Congress. The government also exercises some control over the Federal Reserve by appointing and setting the salaries of the systems highest-level employees, thus the Federal Reserve has both private and public aspects. The U. S. Government receives all of the annual profits, after a statutory dividend of 6% on member banks capital investment is paid
19.
Cuomo v. Clearing House Association, L. L. C.
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Cuomo v. Clearing House Association, L. L. C.557 U. S.519, was a case decided by the United States Supreme Court. In a 5-4 decision, the court determined that a federal banking regulation did not pre-empt the ability of states to enforce their own fair-lending laws. The case came out of an interpretation of the US Treasury Departments Office of the Comptroller of the Currency which had blocked an investigation by New York into lending practices, the OCC claimed that the 1864 National Bank Act bars states from enforcing their own laws against national banks. Justice Scalia stated in the opinion that while the OCC has visitorial powers, the right to examine the affairs of a corporation, a sovereigns visitorial powers and its power to enforce the law are two different things. Contrary to what the regulation says, the National Bank Act pre-empts only the former, Scalia noted that states have always enforced their general laws against national banks--and have enforced their banking-related laws against national banks for at least 85 years. The case is notable for the justices composing the 5-4 majority, which included the liberal justices along with the conservative Scalia, Justice Clarence Thomas, joined by Justices Samuel Alito, Anthony Kennedy, and Chief Justice John Roberts, wrote a dissent. The case is notable for the suggested relationship of this OCC decision to the financial crisis of 2007–2010. The Clearing House Association, OCC Loses Even with Chevron Deference
20.
International Standard Book Number
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The International Standard Book Number is a unique numeric commercial book identifier. An ISBN is assigned to each edition and variation of a book, for example, an e-book, a paperback and a hardcover edition of the same book would each have a different ISBN. The ISBN is 13 digits long if assigned on or after 1 January 2007, the method of assigning an ISBN is nation-based and varies from country to country, often depending on how large the publishing industry is within a country. The initial ISBN configuration of recognition was generated in 1967 based upon the 9-digit Standard Book Numbering created in 1966, the 10-digit ISBN format was developed by the International Organization for Standardization and was published in 1970 as international standard ISO2108. Occasionally, a book may appear without a printed ISBN if it is printed privately or the author does not follow the usual ISBN procedure, however, this can be rectified later. Another identifier, the International Standard Serial Number, identifies periodical publications such as magazines, the ISBN configuration of recognition was generated in 1967 in the United Kingdom by David Whitaker and in 1968 in the US by Emery Koltay. The 10-digit ISBN format was developed by the International Organization for Standardization and was published in 1970 as international standard ISO2108, the United Kingdom continued to use the 9-digit SBN code until 1974. The ISO on-line facility only refers back to 1978, an SBN may be converted to an ISBN by prefixing the digit 0. For example, the edition of Mr. J. G. Reeder Returns, published by Hodder in 1965, has SBN340013818 -340 indicating the publisher,01381 their serial number. This can be converted to ISBN 0-340-01381-8, the check digit does not need to be re-calculated, since 1 January 2007, ISBNs have contained 13 digits, a format that is compatible with Bookland European Article Number EAN-13s. An ISBN is assigned to each edition and variation of a book, for example, an ebook, a paperback, and a hardcover edition of the same book would each have a different ISBN. The ISBN is 13 digits long if assigned on or after 1 January 2007, a 13-digit ISBN can be separated into its parts, and when this is done it is customary to separate the parts with hyphens or spaces. Separating the parts of a 10-digit ISBN is also done with either hyphens or spaces, figuring out how to correctly separate a given ISBN number is complicated, because most of the parts do not use a fixed number of digits. ISBN issuance is country-specific, in that ISBNs are issued by the ISBN registration agency that is responsible for country or territory regardless of the publication language. Some ISBN registration agencies are based in national libraries or within ministries of culture, in other cases, the ISBN registration service is provided by organisations such as bibliographic data providers that are not government funded. In Canada, ISBNs are issued at no cost with the purpose of encouraging Canadian culture. In the United Kingdom, United States, and some countries, where the service is provided by non-government-funded organisations. Australia, ISBNs are issued by the library services agency Thorpe-Bowker
21.
Google Books
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Books are provided either by publishers and authors, through the Google Books Partner Program, or by Googles library partners, through the Library Project. Additionally, Google has partnered with a number of publishers to digitize their archives. The Publisher Program was first known as Google Print when it was introduced at the Frankfurt Book Fair in October 2004, the Google Books Library Project, which scans works in the collections of library partners and adds them to the digital inventory, was announced in December 2004. But it has also criticized for potential copyright violations. As of October 2015, the number of scanned book titles was over 25 million, Google estimated in 2010 that there were about 130 million distinct titles in the world, and stated that it intended to scan all of them. Results from Google Books show up in both the universal Google Search as well as in the dedicated Google Books search website, if Google believes the book is still under copyright, a user sees snippets of text around the queried search terms. All instances of the terms in the book text appear with a yellow highlight. The four access levels used on Google Books are, Full view, Books in the domain are available for full view. In-print books acquired through the Partner Program are also available for full view if the publisher has given permission, usually, the publisher can set the percentage of the book available for preview. Users are restricted from copying, downloading or printing book previews, a watermark reading Copyrighted material appears at the bottom of pages. All books acquired through the Partner Program are available for preview and this could be because Google cannot identify the owner or the owner declined permission. If a search term appears many times in a book, Google displays no more than three snippets, thus preventing the user from viewing too much of the book. Also, Google does not display any snippets for certain reference books, such as dictionaries, Google maintains that no permission is required under copyright law to display the snippet view. No preview, Google also displays search results for books that have not been digitized, in effect, this is similar to an online library card catalog. Google also stated that it would not scan any in-copyright books between August and 1 November 2005, to provide the owners with the opportunity to decide which books to exclude from the Project. It can let Google scan the book under the Library Project and it can opt out of the Library Project, in which case Google will not scan the book. If the book has already been scanned, Google will reset its access level as No preview and this information is collated through automated methods, and sometimes data from third-party sources is used. This information provides an insight into the book, particularly useful when only a view is available
22.
The North American
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The North American was an American newspaper published in Philadelphia, Pennsylvania. It was founded in 1839, though it could claim a lineage back to 1771, and published until 1925, the North American, a daily newspaper in Philadelphia, was first published on March 26,1839, by S. C. Later that year, the paper was acquired by C. G, childs and J. Reese Fry, along with the Commercial Herald. In October 1845, the paper was acquired by George R. Graham, well known as the publisher of Grahams Magazine, and Alexander Cummings, the Daily Advertiser suffix was also dropped. Cummings soon departed over differences, and Morton McMichael joined Graham as publisher in January 1847. At that point, it was an influential Whig newspaper, in July of that year, writer and playwright Robert Montgomery Bird was brought in as a one-third owner, and the paper was merged with the United States Gazette, another Whig paper in town. The paper was redubbed as the North American and United States Gazette, Graham left the paper in 1848, and McMichael and Bird became the driving forces in making the paper a journalistic and financial success. After Bird died in 1854, McMichael continued as the owner until his death in 1879. The paper was a supporter of Abraham Lincoln, as it developed to become a supporter of the Republican party. The United States Gazette suffix was dropped from the name in 1876. McMichaels two sons assumed control of the paper in his years, his son Clayton assuming chief editorial duties. In 1899, the paper was acquired by Thomas B, in 1925, Cyrus Curtis, owner of the Public Ledger, acquired the North American from Thomas B. Wanamakers estate as part of his bid to grow the Ledger by shutting down some of its competitors, the Ledger adopted the official title Public Ledger and North American, until late 1927
23.
ABC-CLIO
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ABC-CLIO, LLC is a publishing company for academic reference works and periodicals primarily on topics such as history and social sciences for educational and public library settings. ABC-CLIO provides service to fifteen different online databases which contain one million online textbooks. The company consults academic leaders in the fields they cover in order to provide authority for their reference titles, the headquarters are located in Santa Barbara, California. ABC-CLIO was founded in 1953 as a privately held corporation by Eric Boehm with its first publication, during the 1960s, a sister bibliographic and abstract publication on American history was added, America, History and Life, which was considered an award-winning title. The company entered into publishing with electronic data in the 1960s and in 1975. During the 1980s, ABC-CLIO expanded into providing primary reference books such as encyclopedias and dictionaries, in the 1990s, ABC-CLIO began to provide access to its humanities database on CD-ROM. The Exegy Current Events CD-ROM was named Best Disc of the Year by Library Journal, in 1998, ABC-CLIO provided electronic access to America, History and Life. By the 2000s, one of companys most popular products had become online databases for researching many topics in the field of the humanities, in 2001, ABC-CLIO began to publish eBooks, initially providing 150 different titles to schools and libraries. The companys reference books had won awards, and the company started a series of subject-related online databases for secondary school use. In 2004, the acquired the quarterly historical journal, Journal of the West. In 1996, ABC-CLIO merged with a publishing company, Intellimation. The merger brought Becky Snyder, ABC-CLIOs current president, from Intellimation and it sold Historical Abstracts and America, History and Life to EBSCO Publishing in 2007. In 2009-03-18, Libraries Unlimited announced the acquisition of Linworth Publishing, Journal of the West In 2008, ABC-CLIO acquired the Greenwood Publishing Group from Houghton Mifflin Harcourt. The deal gave ABC-CLIO a perpetual license to use the imprints of Greenwood Press, acquiring the publishing group gave ABC-CLIO access to Greenwood Press, Praeger Publishers, Praeger Security International and Libraries Unlimited. Greenwood focuses on publishing full-text reference works which are authoritative on various topics, Libraries Unlimited came to ABC-CLIO as part of a deal with Greenwood Press. In 2012, Kathyrn Suárez was named Publisher for this division focuses on publishing for librarians. ABC-CLIO databases are provided under the umbrella of ABC-CLIO Solutions, there are fifteen different databases providing access to different subject areas. ABC-CLIO Solutions provides digital curriculum with multimedia content, text-to-speech features, translation tools which covers topics relating to history
24.
Business Week
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Bloomberg Businessweek is an American weekly business magazine published by Bloomberg L. P. Businessweek was founded in 1929, the magazine was created to provide information and interpretation about what was happening in the business world and it is headquartered in New York City. Megan Murphy was appointed editor of the magazine in November 2016, Businessweek was first published in September 1929, weeks before the stock market crash of 1929. The magazine provided information and opinions on what was happening in the world at the time. Businessweek was originally published to be a resource for business managers, however, in the 1970s, the magazine shifted its strategy and added consumers outside of the business world. Since 1975, Businessweek has carried more annual advertising pages than any magazine in the United States. Stephen B. Shepard served as editor-in-chief from 1984 until 2005 when he was chosen to be the dean of the CUNY Graduate School of Journalism. Under Shepard, Businessweeks readership grew to more than six million in the late 1980s and he was succeeded by Stephen J. Adler of The Wall Street Journal. Businessweek suffered a decline during the recession as advertising revenues fell one-third by the start of 2009. In July 2009, it was reported that McGraw-Hill was trying to sell Businessweek and had hired Evercore Partners to conduct the sale. Because of the liabilities, it was suggested that it might change hands for the nominal price of $1 to an investor who was willing to incur losses turning the magazine around. In late 2009, Bloomberg L. P. bought the magazine—for a reported price between $2 million to $5 million plus assumption of liabilities—and renamed it Bloomberg BusinessWeek. It is now believed McGraw-Hill received the high end of the price, at $5 million. Currently, the magazine still loses $30 million per year, about half of the $60 million it was reported losing in 2009, Adler resigned as editor-in-chief and was replaced by Josh Tyrangiel, who had been deputy managing editor of Time magazine. In early 2010, the title was restyled Bloomberg Businessweek as part of a redesign. Megan Murphy is the editor of the magazine in the eight years of Bloomberg ownership. The magazine is losing between $20-$30 million a year. The magazine is to undergo changes in the second quarter of 2017
25.
Consumer Financial Protection Bureau
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The Consumer Financial Protection Bureau is an agency of the United States government responsible for consumer protection in the financial sector. The CFPB was established as an independent agency, but this status is being reviewed by the US Court of Appeals, according to Director Richard Cordray, the Bureaus priorities are mortgages, credit cards and student loans. The bureau is an independent unit located inside and funded by the United States Federal Reserve and it writes and enforces rules for financial institutions, examines both bank and non-bank financial institutions, monitors and reports on markets, as well as collects and tracks consumer complaints. The CFPB opened its website in early February 2011 to accept suggestions from consumers via YouTube, Twitter, according to its web site, the CFPBs central mission. In July 2010, Congress passed the Dodd–Frank Wall Street Reform and Consumer Protection Act, during the 111th United States Congress in response to the Late-2000s recession, the agency was originally proposed in 2007 by Harvard Law School professor Elizabeth Warren. The proposed CFPB was actively supported by Americans for Financial Reform, on July 17, President Obama nominated former Ohio Attorney General and Ohio State Treasurer Richard Cordray to be the CFPB first formal director. However, his nomination was immediately in jeopardy due to 44 Senate Republicans vowing to derail any nominee in order to encourage a decentralized structure to the organization, Senate Republicans had also shown a pattern of refusing to consider regulatory agency nominees, purportedly as a method of budget cutting. Due to the way the legislation creating the bureau was written, until the first Director was in place and he noted lessons learned from experiences with Fannie Mae and Freddie Mac as support for his argument. Politico interpreted Shelbys statements as saying that Cordrays nomination was dead on arrival, Republican threats of a filibuster in the Senate to block the nomination in December 2011 led to Senate inaction. On July 16,2013, the Senate confirmed Richard Cordray as director in a 66–34 vote, on July 11,2013, the CFPB Rural Designation Petition and Correction Act was introduced into the House of Representatives. One practical effect of having a county designated rural is that people can qualify for some types of mortgages by getting them exempted from the CFPBs qualified mortgage rule. On September 26,2013, the Consumer Financial Protection Safety, if adopted, the bill would have modified the CFPB by transforming it into a five-person commission and removing it from the Federal Reserve System. The CFPB would have renamed the Financial Product Safety Commission. The bill was intended to make it easier to override the CFPB decisions. It passed in the House of Representatives on February 27,2014 and was received by the Senate on March 4 and it was never considered in the Democratic-controlled Senate. Regulatory implementation regarding mortgages is covered on the bureau website, topics provided for consumers include,2013 mortgage rule implementation, resources to help people comply, quick reference charts, supervision and examination materials, and a link for feedback. It also provides information that covers rural or under-served counties, HUD-approved housing counselors. Appendix Q relates to the ratio that must be possessed for qualified mortgages and provides details about how to determine the factors for that calculation
26.
Farm Credit Administration
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The Farm Credit Administration is an independent agency of the Executive Branch of the federal government of the United States. It derives its authority from the Farm Credit Act of 1971, the FCA is headquartered in McLean, Virginia, near Washington, DC. The Farm Credit Administration was established by Executive Order 6084, which transferred most of the functions of the Federal Farm Board to the new Agricultural Adjustment Administration, the Federal Farm Board was then renamed the Farm Credit Administration. The Farm Credit Act of 1933 provides for organizations within the Farm Credit Administration, the Farm Credit Act of 1933 was part of President Franklin D. Roosevelts New Deal, to help farmers refinance mortgages over a longer time at below-market interest rates at regional and national banks. This helped farmers recover from the Dust Bowl, the Emergency Farm Mortgage Act loaned funds to farmers in danger of losing their properties. The campaign refinanced 20% of farmers mortgages, an Executive order by Roosevelt in 1933 placed all existing agricultural credit organizations under the supervision of a new agency, the Farm Credit Administration. This included the Federal Farm Board, the Farm Credit Administration was independent until 1939, when it became part of the U. S. Department of Agriculture, but became an independent agency again under the Farm Credit Act of 1953. This Act created a Federal Farm Credit Board with 13 members to develop policy for the Farm Credit Administration, the Farm Credit Act of 1971 recodified all previous acts governing the Farm Credit System. Title 12 of the Code of Federal Regulations Commodity Credit Corporation Farm Service Agency Official website Farm Credit Administration in the Federal Register
27.
Federal Deposit Insurance Corporation
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The Federal Deposit Insurance Corporation is a United States government corporation providing deposit insurance to depositors in US banks. The insurance limit was initially US$2,500 per ownership category, since the passage of the Dodd–Frank Wall Street Reform and Consumer Protection Act in 2011, the FDIC insures deposits in member banks up to US $250,000 per ownership category. The FDIC and its reserves are not funded by public funds, the FDIC also has a US$100 billion line of credit with the United States Department of the Treasury. Only banks are insured by the FDIC, credit unions are insured up to the insurance limit by the National Credit Union Administration. As of August 27,2014, the FDIC provided deposit insurance at 6,638 institutions, the FDIC also examines and supervises certain financial institutions for safety and soundness, performs certain consumer-protection functions, and manages receiverships of failed banks. Each ownership category of a money is insured separately up to the insurance limit. For joint accounts, each co-owner is assumed to own the same fraction of the account as does each other co-owner. Thus if three people own a $750,000 account, the entire account balance is insured because each depositors $250,000 share of the account is insured. The owner of a revocable trust account is insured up to $250,000 for each unique beneficiary. Thus if there is a owner of an account that is specified as in trust for three different beneficiaries, the funds in the account are insured up to $750,000. The Board of Directors of the FDIC is the body of the FDIC. The board is composed of five members, three appointed by the president of the United States with the consent of the United States Senate, the three appointed members each serve six-year terms. No more than three members of the board may be of the political affiliation. The two ex officio members are the Comptroller of the Currency and the director of the Consumer Financial Protection Bureau. As of January 1,2016, the members of the Board of Directors of the Federal Deposit Insurance Corporation were, both of the panics renewed discussion on deposit insurance. In 1893, William Jennings Bryan presented a bill to Congress proposing a national insurance fund. No action was taken, as the legislature paid more attention to the depression at the time. After 1907, eight states established deposit insurance funds, in 1921, there were about 31,000 banks in the US
28.
Federal Financial Institutions Examination Council
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The Federal Financial Institutions Examination Council is a formal U. S. It also oversees real estate appraisal in the United States and its regulations are contained in title 12 of the Code of Federal Regulations. FFIEC was established March 10,1979, pursuant to title X of the Financial Institutions Regulatory, in accordance with HMDA, the FFIEC established an advisory State Liaison Committee composed of five representatives of state supervisory agencies. In 2006, the State Liaison Committee was added to the Council as a voting member, the Appraisal Subcommittee was established within the FFIEC pursuant to title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989. Comptroller of the Currency and FFIEC Chair Thomas J. Curry stated on May 8,2014, on June 30,2015 the FFIEC released the FFIEC Cybersecurity Assessment Tool link Cyber Assessment Toolto enable regulated financial institutions to assess their cybersecurity readiness. This tool may be used as a self-assessment, regulators may also review the completed assessment during their examination. The FFIEC has six voting representatives of member agencies, 34A Federal Financial Institutions Examination Council in the Federal Register
29.
Federal Housing Finance Agency
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In its role as regulator, it regulates Fannie Mae, Freddie Mac, and the 11 Federal Home Loan Banks. It is wholly separate from the Federal Housing Administration, which provides mortgage insurance. One year after the law was signed, the OFHEO and the FHFB went out of existence, all existing regulations, orders and decisions of OFHEO and the Finance Board remain in effect until modified or superseded. FHFA director Lockhart transmitted a notice of establishment, for publication in the Federal Register on September 4,2008, the notice formally announced the agencys existence and authority to act. On September 7,2008, FHFA director Lockhart announced he had put Fannie Mae, the action is one of the most sweeping government interventions in private financial markets in decades. He further said that I attribute the need for todays action primarily to the inherent conflict and flawed business model embedded in the GSE structure, and to the ongoing housing correction. The suits, some of which name individual defendants, allege a variety of violations of securities law and common law. The suits seek a variety of damages and civil penalties, below is a list of the cases, with amounts of any settlements reached in 2013 and 2014. General Electric Company $6.25 million 2, UBS Americas, Inc. $885 million 4. J. P. Morgan Chase & Co. $4 billion 5, deutsche Bank AG $1.925 billion 6. Ally Financial, Inc. $475 million 7, credit Suisse Holdings Inc. $885 million 13. Barclays Bank PLC $280 million 14, first Horizon National Corp. $110 million 15. RBS Securities, Inc. $99.5 million 16, goldman Sachs & Co. $1.2 billion 17. On May 1,2013, President Barack Obama nominated Mel Watt as the next FHFA head, after Democrats eliminated rules allowing filibusters on executive branch nominations, the U. S. Senate confirmed Watt on December 10,2013. S
30.
Federal Reserve Board of Governors
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The Board of Governors of the Federal Reserve System, commonly known as the Federal Reserve Board, is the main governing body of the Federal Reserve System. It is charged with overseeing the Federal Reserve Banks and with helping implement monetary policy of the United States, Governors are appointed by the President of the United States and confirmed by the Senate for staggered 14-year terms. By law, the appointments must yield a fair representation of the financial, agricultural, industrial, the Board of Governors does not receive funding from Congress, and the terms of the seven members of the Board span multiple presidential and congressional terms. Once a member of the Board of Governors is appointed by the president, the Board is required to make an annual report of operations to the Speaker of the U. S. House of Representatives. It also supervises and regulates the operations of the Federal Reserve Banks, membership is by statute limited in term, and a member that has served for a full 14 year term is not eligible for reappointment. There are numerous occasions where an individual was appointed to serve the remainder of another members uncompleted term, the law provides for the removal of a member of the Board by the President for cause. The Chair and Vice Chair of the Board of Governors are appointed by the President from among the sitting Governors and they both serve a four-year term and they can be renominated as many times as the President chooses, until their terms on the Board of Governors expire
31.
Financial Stability Oversight Council
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The Office of Financial Research is intended to provide support to the council. The Dodd-Frank Act provides the Council with broad authorities to identify, the Act also designates the Secretary of the Treasury as Chairperson. Inherent to the FSOCs role as a council is facilitation of communication among financial regulators. The FSOC has the authority to set aside certain financial regulations published by the Consumer Financial Protection Bureau if those rules would threaten financial stability, at minimum, it must meet quarterly. The Report is intended to describe significant financial market and regulatory developments, analyze potential emerging threats, the July 26,2011 report warned that the United States faces potential losses connected with the European debt crisis. In September 2014, a group of Republican lawmakers accused U. S. regulators of disparate treatment of financial firms currently considered for tougher oversight. Since the inception of FSOC, the Council has designated select financial market utilities as “systemically important. ”The designation of systemically important subjects the FMU to enhanced regulatory oversight. The three supervisory agencies charged with regulating systemically important FMUs are, the Federal Reserve Board, Securities and Exchange Commission, the Federal Advisory Committee Act, which limits the powers of advisory committees, does not apply to the council. The council has an almost unlimited budget in that the Council may draw on virtually any resource of any department or agency of the federal government. Any employee of the government may be detailed to the Council without reimbursement. Any member of the Council who is an employee of the federal government serves without additional compensation, additionally, Any expenses of the Council shall be treated as expenses of, and paid by, the Office of Financial Research. The Council has very broad powers to monitor, investigate and assess any risks to the US financial system, on a regular basis, the Council is required to make a report to Congress describing the state of the U. S. financial system. The Federal Reserve may promulgate safe harbor regulations to exempt certain types of banks from regulation. A state banking supervisor, to be designated by a process determined by the state banking supervisors
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National Credit Union Administration
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The National Credit Union Administration is the independent federal agency created by the United States Congress to regulate, charter, and supervise federal credit unions. With the backing of the faith and credit of the U. S. As of September 2016, there were 5,844 federally insured credit unions, with assets totaling more than $1.3 trillion, the NCUA is governed by a three-member board appointed by the President of the United States and confirmed by the Senate. The President also chooses who will serve as Chairman, Board members serve six-year terms, although members often remain until their successors are confirmed and sworn in. The NCUA is administered through five regional offices, each responsible for specific states and territories, as part of the New Deal, President Franklin D. Roosevelt signed the Federal Credit Union Act into law in 1934. The law allowed the chartering of federal unions in all states. The federal law sought to make available and promote thrift through a national system of nonprofit. At first, the newly created Bureau of Federal Credit Unions was housed at the Farm Credit Administration, in the 1940s and 1950s, credit unions grew steadily, reaching a membership of more than six million people at over 10,000 federal credit unions by 1960. The growth in credit unions resulted in an overhauling of the Bureau of Federal Credit Unions to form the independent federal agency that presently regulates the industry. In 1970, the renaming to National Credit Union Administration was made possible in part by the creation of the National Credit Union Share Insurance Fund to insure credit union deposits, the NCUSIF was created without any tax dollars, capitalized solely by credit unions. By 1977, services available to credit union members expanded, including share certificates, in 1979, a three-member Board replaced the NCUA administrator. Congress added the finishing touches to this new administration with the addition of the Central Liquidity Facility, the decade of the 1970s saw substantial growth for existing credit unions, with membership doubling and assets tripling to over $65 billion. The high interest rates and unemployment in the early 1980s brought insurance losses, the NCUSIF experienced strain, and credit unions lobbied Congress to recapitalize the Fund. In 1985, the plan became law, and federally insured credit unions recapitalized the NCUSIF by depositing 1 percent of their shares into the NCUSIF, the fully capitalized National Credit Union Share Insurance Fund has fail safe features. In 1991, when equity level dipped below 1.23 percent, the enhancement of member services in the 1980s accompanied deregulation and increased flexibility in merger and field of membership criteria. Previously, membership in credit unions was generally limited to groups with a pre-existing common bond. Changes since 1998 as a result of H. R.1151, during the 1990s and into the 21st century, credit unions grew steadily in assets, shares, and members. Failures remained generally low, and the Share Insurance Fund maintained a healthy equity level, during the 1990s and into the beginning of the 21st century, U. S. credit unions continued to develop as a whole
33.
1933 Banking Act
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The Banking Act of 1933 was a statute enacted by the United States Congress that established the Federal Deposit Insurance Corporation and imposed various other banking reforms. The entire law is referred to as the Glass–Steagall Act, after its Congressional sponsors, Senator Carter Glass of Virginia. That limited meaning of the term is described in the article on Glass–Steagall Legislation, the deposit insurance and many other provisions of the Act were criticized during Congressional consideration. The entire Act was long-criticized for limiting competition and thereby encouraging an inefficient banking industry, supporters of the Act cite it as a central cause for an unprecedented period of stability in the US banking system during the ensuing four or, in some accounts, five decades following 1933. 1934 legislation delayed the effectiveness of the permanent insurance system, the Banking Act of 1935 repealed the permanent system and replaced it with a system that fully insured balances up to $5,000 and provided no insurance for balances above that amount. Over the years, the limit has been raised which reached up to its current limit of $250,000, the 1933 Banking Act required all FDIC insured banks to be, or to apply to become, members of the Federal Reserve System by July 1,1934. The Banking Act of 1935 extended that deadline to July 1,1936, state banks were not eligible to be members of the Federal Reserve System until they became stockholders of the FDIC, and thereby became an insured institution. 1939 legislation repealed the requirement that FDIC-insured banks join the Federal Reserve System, before 1950, the laws establishing the FDIC and FDIC insurance were part of the Federal Reserve Act. 1950 legislation created the Federal Deposit Insurance Act, the FDIA is described in the article on the Federal Deposit Insurance Corporation. Over time, the term Glass–Steagall Act came to be used most often to refer to four provisions of the 1933 Banking Act that separated commercial banking from investment banking, Congressional efforts to repeal the Glass–Steagall Act referred to those four provisions. Those efforts culminated in the 1999 Gramm-Leach-Bliley Act, which repealed the two provisions restricting affiliations between banks and securities firms, the 1933 Banking Acts separation of investment and commercial banking is described in the article on the Glass–Steagall Act. Institutions were given one year to decide whether they wanted to specialize in commercial or investment banking, the act had a large impact on the Federal Reserve. Notable provisions included the creation of the Federal Open Market Committee under Section 8, however, the 1933 FOMC did not include voting rights for the Federal Reserve Board, which was revised by the Banking Act of 1935 and amended again in 1942 to closely resemble the modern FOMC. Several provisions of the 1933 Banking Act sought to restrict speculative uses of bank credit, Section 11 prohibited Federal Reserve member banks from acting as agents for nonbanks in placing loans to brokers or dealers. Glass also hoped to put speculative credit into more productive sectors of the U. S. economy, the 1933 Banking Act gave tighter regulation of national banks to the Federal Reserve which required state member banks and holding companies to make three reports annually. The reports were to be given to their Federal Reserve Board, Glass had been the House sponsor of the Federal Reserve Act of 1913 and considered himself the father of the Federal Reserve System. Glass sought to correct what he considered to be the errors the Federal Reserve System had made in not controlling what he considered speculative credit during the 1920s. The bills provided that such payments would be used to make payments to depositors to the extent of the banks bona fide assets
34.
Bank Holding Company Act
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The Bank Holding Company Act of 1956 is a United States Act of Congress that regulates the actions of bank holding companies. The law was implemented, in part, to regulate and control banks that had formed bank holding companies to own both banking and non-banking businesses. The law generally prohibited a bank holding company engaging in most non-banking activities or acquiring voting securities of certain companies that are not banks. The interstate restrictions of the Bank Holding Company act were repealed by the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994, the IBBEA allowed interstate mergers between adequately capitalized and managed banks, subject to concentration limits, state laws and Community Reinvestment Act evaluations. Other restrictions, which prohibited bank holding companies from owning other financial institutions, were repealed in 1999 by Gramm-Leach-Bliley Act, in the United States, financial holding companies continue to be prohibited from owning non-financial corporations in contrast to Japan and continental Europe, where this arrangement is common. That is not a problem since private equity firms are not banks, additionally under a report was issued pursuant to Section 620 of the Dodd-Frank Act. Which includes recommendations for legislation to repeal several current authorities for banks to engage in physical commodities activities
35.
Bank Secrecy Act
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The Bank Secrecy Act of 1970 requires financial institutions in the United States to assist U. S. government agencies to detect and prevent money laundering. The BSA was originally passed by the Congress of the United States in 1970, the BSA is sometimes referred to as an anti-money laundering law or jointly as BSA/AML. The BSA regulations require all institutions to submit five types of reports to the government. The following is not an exhaustive list of reports to be filed, the FBAR has an individual filing requirement, as detailed below. A recent District Court case in the 10th Circuit has significantly expanded the definition of interest in and other Authority. Treasury Department Form 90-22.47 and OCC Form 8010-9, 8010-1 Suspicious Activity Report, finCEN Form 110 Designation of Exempt Person, Banks must file this form to designate an exempt customer for the purpose of CTR reporting under the BSA. In addition, banks use this form biennially to renew exemptions for eligible non-listed business and it also requires any business receiving one or more related cash payments totalling more than $10,000 to file IRS/FinCEN Form 8300. The CTR must report cash transactions in excess of $10,000 during the business day. The amount over $10,000 can be either in one transaction or a combination of cash transactions and it is filed electronically with the Financial Crimes Enforcement Network. The MIL must indicate cash purchases of monetary instruments, such as orders, cashiers checks and travelers checks, in value totaling $3,000 to $10,000. This form is required to be kept on record at the financial institution, a financial institution must maintain a Monetary Instrument Log for five years. The SAR must report any cash transaction where the customer seems to be trying to avoid BSA reporting requirements by not filing CTR or MIL, the bank should not let the customer know that a SAR is being filed. These reports are filed with the Financial Crimes Enforcement Network and this requirement and its accompanying implied gag order was added by the Annunzio-Wylie Anti-Money Laundering Act §1517. There are heavy penalties for individuals and institutions that fail to file CTRs, MILs, there are also penalties for a bank which discloses to its client that it has filed a SAR about the client. Penalties include heavy fines and prison sentences, CTRs include the individuals bank account number, name, address, and social security number. A single CTR filed for an account is usually of no concern to the authorities. Businesses that deal primarily in cash, such as bars and restaurants, can be exempted from having their deposits and withdrawals reported on CTRs, instead, most banks have computer systems which retain information on CTRs and allow duplicate CTRs to be created seamlessly. U. S. Additionally, they must report the accounts on Schedule B of the Form 1040 tax form, the FBAR should be filed separately with the U. S. Treasury by June 30 of each year
36.
Truth in Lending Act
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With the exception of certain high-cost mortgage loans, TILA does not regulate the charges that may be imposed for consumer credit. Rather, it requires uniform or standardized disclosure of costs and charges so that consumers can shop and it also imposes limitations on home equity plans that are subject to the requirements of 12 C. F. R. 1026.40 and certain higher-priced mortgage loans that are subject to the requirements of 12 C. F. R, the regulation prohibits certain acts or practices in connection with credit secured by a consumers principal dwelling. The Truth in Lending Act was originally Title I of the Consumer Credit Protection Act, the regulations implementing the statute, which are known as Regulation Z, are codified at 12 C. F. R. From TILAs inception, the authority to implement the statute by issuing regulations was given to the Federal Reserve Board, any forthcoming regulations implementing the statute, which are also formally referred to as Regulation Z, will be codified at 12 C. F. R. 1026 and attempt to mirror the FRBs Regulation Z whenever feasible, the Federal Reserve will retain some limited rule making authority under TILA for loans made by certain motor vehicle dealers, and for certain other provisions. The TILA introduced the Annual Percentage Rate calculation mandated for all consumer lenders, certain misleading interest rate calculations used previously, mainly on auto loans, were barred. For more than a decade, consumer loans were reported by APR in a meaningful way. Then in the 1980s the auto manufacturers began to exploit a loophole in TILA, neither the Act nor its administrators adequately differentiated between amount financed and finance charges, two terms that appear on the TILA required disclosure statements. By bundling the price of the car and its financing charges, thus zero percent APR financing was born. Typical offers from companies are Zero Percent APR financing available or $1,000 rebate. The consumer who elects zero percent financing gives up a $1,000 rebate, effectively, he or she pays $1,000 to get the interest free loan. Since only auto makers can do this type of bundling, banks, credit unions and they must disclose true APR rates while the auto makers can claim no interest costs. In the process, the consumer is left with a complex finance problem. Zero percent financing can cost a lot less, or a lot more than conventional financing with a non-auto maker institution, the regulation is divided into subparts. Subpart B relates to open-end credit lines, which credit card accounts. Subpart C relates to closed-end credit, such as home-purchase loans and it contains rules on disclosures, treatment of credit balances, annual percentage rate calculations, right of rescission, non requirements, and advertising. Subpart D contains rules on disclosures, Spanish language disclosure in Puerto Rico, record retention, effect on state laws, state exemptions
37.
Fair Credit Reporting Act
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It was intended to protect consumers from the willful and/or negligent inclusion of inaccurate information in their credit reports. To that end, the FCRA regulates the collection, dissemination, together with the Fair Debt Collection Practices Act, the FCRA forms the foundation of consumer rights law in the United States. It was originally passed in 1970, and is enforced by the US Federal Trade Commission, the Fair Credit Reporting Act, as originally enacted, was title VI of Pub. L. It was written as an amendment to add a title VI to the Consumer Credit Protection Act, commonly referred to as credit reports, a consumer report contains information about your credit - and some bill repayment history - and the status of your credit accounts. Credit reports also can contain rental repayment information if you are a property renter and it also can contain public records such as liens, judgments, and bankruptcies that provide insight into your financial status and obligations. A2015 study released by the Federal Trade Commission found that 23% of consumers identified inaccurate information in their credit reports, the free report can be requested by telephone, mail, or through the government-authorized website, annualcreditreport. com. Consumer reports obtained through annualcreditreport. com make it easy to identify, the FCRA regulates, Consumer reporting agencies, Users of consumer reports, and, Furnishers of consumer information. If a consumers rights under the FCRA are violated, they can recover, Actual or statutory damages, Attorneys fees, Court costs, ”The threat of punitive damages under 1681n of the FCRA is the primary factor deterring erroneous reporting by the reporting industry. The statute of limitations requires consumers to file suit prior to the earlier of, Consumer attorneys often take these cases on a contingency fee basis because the statute allows a consumer to recover attorneys fees from the offending party. A creditor, as defined by the FCRA, is a company that furnishes information to consumer reporting agencies, typically, these are creditors, with which a consumer has some sort of credit agreement. Other examples of information furnishers are collection agencies, state or municipal courts reporting a judgment of some kind, past, lenders have an important role to play in ensuring credit reports are accurate. (This notice doesnt have to be sent as a separate notice, if sent as part as the monthly statement, it needs to be conspicuous, but need not be in bold type. Required wording, Notice before negative information is reported, We may report information about your account to credit bureaus, late payments, missed payments, or other defaults on your account may be reflected in your credit report. Notice after negative information is reported, We have told a credit bureau about a late payment and this information may be reflected in your credit report. Consumer reporting agencies are entities that collect and disseminate information about consumers to be used for evaluation and certain other purposes. Credit bureaus, a type of consumer reporting agency, hold a credit report in their databases. The three big CRAs—Experian, TransUnion, and Equifax—do not interact with information furnishers directly as a result of consumer disputes and they use a system called E-Oscar. In some areas of the country, however, there are other credit bureaus
38.
Home Mortgage Disclosure Act
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The Home Mortgage Disclosure Act is a United States federal law that requires certain financial institutions to provide mortgage data to the public. HMDA grew out of concern over credit shortages in certain urban neighborhoods. A second purpose is to aid public officials in targeting public investments from the sector to areas where they are needed. As the name implies, HMDA is a law that relies upon public scrutiny for its effectiveness. US financial institutions must report HMDA data to their regulator if they meet certain criteria, the criteria is different for depository and non-depository institutions and are available on the FFIEC website. In 2012, there were 7,400 institutions that reported a total of 18.7 million HMDA records, companies covered under HMDA are required to keep a Loan Application Register. Each time someone applies for a home mortgage at a covered by HMDA. FFIEC screens the data for errors and the releases it to the public electronically, reporting institutions are also required to disclose their individual LARs to members of the public upon request. HMDA data can be used to identify probable housing discrimination in various ways, such discrimination is illegal in the United States, but has grown increasingly rare vis-a-vis the other forms outlined below. Such discrimination is illegal in the United States, however, there is tension in this arena between attempts by banks to attract high quality borrowers and the extent to which borrower quality corresponds with a protected status. Banks are now wary of entering such relationships, insofar as they expose the lender to the liability associated with the behavior of the partner organization. Rather, redlining must be quite overt to draw attention, for example, a loan officer may query applicants to see if they have applied and been approved for a loan at any other banks. The rate for those that can produce another institutions offer may then be adjusted accordingly to remain competitive, many disputes between lenders and regulators in the context of price discrimination relate to such scenarios. FFIEC about HMDA Maps and charts from Consumer Financial Protection Bureau HMDA resource center Public Law 94-200, 94th Congress, S
39.
Community Reinvestment Act
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Congress passed the Act in 1977 to reduce discriminatory credit practices against low-income neighborhoods, a practice known as redlining. The law does not list specific criteria for evaluating the performance of financial institutions, rather, it directs that the evaluation process should accommodate the situation and context of each individual institution. Federal regulations dictate agency conduct in evaluating a banks compliance in five performance areas and this examination culminates in a rating and a written report that becomes part of the supervisory record for that bank. An institutions CRA compliance record is taken account by the banking regulatory agencies when the institution seeks to expand through merger. The law does not mandate any other penalties for non-compliance with the CRA, the same banking agencies that are responsible for supervising depository institutions are also the agencies that conduct examinations for CRA compliance. These agencies are the Federal Reserve System, the FDIC, the Office of the Comptroller of the Currency, the Federal Financial Institutions Examination Council coordinates inter-agency information about the CRA. Information about the CRA ratings of individual banking institutions from the four agencies, is publicly available from the website of the FFIEC. These ratings were first made available by the Clinton administration to enable public participation, the original Act was passed by the 95th United States Congress and signed into law by President Jimmy Carter on October 12,1977. The CRA was passed as a result of pressure to address the deteriorating conditions of American cities—particularly lower-income. Community activists, such as Gale Cincotta of National Peoples Action in Chicago, had led the fight to pass. Several legislative and regulatory revisions have since been enacted, the Fair Housing Act and the Equal Credit Opportunity Act prohibit discrimination on the basis of race, sex, or other personal characteristics. The Home Mortgage Disclosure Act requires that financial institutions publicly disclose mortgage lending, in contrast with those acts, the CRA seeks to ensure the provision of credit to all parts of a community, regardless of the relative wealth or poverty of a neighborhood. Before the Act was passed, there were shortages of credit available to low-. In their 1961 report, the U. S, commission on Civil Rights found that African-American borrowers were often required to make higher downpayments and adopt faster repayment schedules. The commission also documented blanket refusals to lend in particular areas, the allegations of redlining certain neighborhoods originated with the Federal Housing Administration in the 1930s. In Congressional debate on the Act, critics charged that the law would create unnecessary regulatory burdens, Community groups only slowly organized to take advantage of their right under the Act to complain about law enforcement of the regulations. The hidden table below lists the acts of Congress that affected the Community Reinvestment Act directly, the years in which the legislative revisions were made appear in bold text preceding the Public Laws that enacted them. The links to the codification and section notes may provide information about the legislative changes as well
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Electronic Fund Transfer Act
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The Electronic Fund Transfer Act was passed by the U. S. The act was implemented in Federal Reserve Board Regulation E, the EFT Act recognizes their right to nominate the financial institution to which such payments are to be made. The EFT Act also prohibits a creditor or lender from requiring a consumer to repay a loan or other credit by electronic fund transfer, the financial institution must give the customer notice of their liability in case the card is lost or stolen. This must include a number for reporting the loss and a description of its error resolution process. The EFT Act does not apply to transfers from any account held in the name of the institution the consumer uses to the account the consumer uses. The EFT Act would also not apply to automatic transfers among a consumer’s account at a financial institution. The EFT Act also does not cover all transfers and these cards may not be covered by the EFT Act. When using electronic funds transfer, the Act does not give the consumer the right to stop payment, Electronic funds transfer The Federal Reserve Board. Consumer Handbook to Credit Protection Laws, Electronic Fund Transfers, retrieved June 26,2006, from the World Wide Web, https, //web. archive. org/web/20090830114217/http, //federalreserve. gov/pubs/consumerhdbk/electronic. htm Federal Trade Commission. Retrieved June 26,2006, from the World Wide Web, http, //www. ftc. gov/bcp/edu/pubs/consumer/credit/cre14. shtm Lloyd, overcoming the obstacles to implementation of point-of-sale electronic fund transfer systems, EFTA and the new uniform payments code. Paying with plastic, maybe not so crazy, the University of Chicago Law Review. The University of Chicago Law Review
